When unexpected circumstances require immediate financial attention, payday loans are a smart alternative to late fees, missed work days, and the other negative situations that borrowers often find themselves faced with. However, if you’re in a situation where you need to utilize a short-term loan, you’re not alone. Many people live paycheck to paycheck.

Unfortunately, that means the repayment process can be difficult. The median payday loan is $350 dollars, and you’ll have somewhere in the neighborhood of 2-3 weeks to pay it back. You’re going to need to make some changes to your typical budget and lifestyle in order to make that payment on time – or significant fees are a likely consequence.

The good news is that a few simple tips can go a long way to helping you get that loan repaid on time. With a little bit of compromise and some discipline, you can be debt-free quickly and avoid racking up additional finance charges on your loan.

Tip 1: Bank The Surplus Loan Amount

Fee structures for payday loans are often built around a set dollar amount for every $100 borrowed. No matter what increment structure your lender uses, you probably won’t be able to take out a loan for the exact amount to cover your emergency. For example, if an auto repair is going to cost you $319 dollars, you’ll have to take out a loan for $400 dollars.

Because of this, you should always stash the surplus money away to help with repayment. It’s likely going to be difficult to come up with the money on time. Don’t make matters worse by spending the additional money that you really didn’t need to borrow in the first place.

Tip 2: Sell Some Belongings

Successful payday loan borrowers realize that they aren’t really borrowing money – they’re actually borrowing time. If a slow-building financial issue or an immediate crisis has caused your financial situation to become critical, a payday loan offers you time to get your affairs in order. That said, the countdown on that time starts the moment you step out of your lender’s office.

That means changes need to be made immediately. A two-week window allows you to determine which of your items are unnecessary and carry value – as well as the proper way to sell them. So, take inventory of your home and your life to determine which items you can live without, and get to selling them immediately. That way, you won’t be forced to unload more than you should at a pawn shop for pennies on the dollar.

Tip 3: Supplement With Traditional Credit

In many cases, payday loan borrowers have no access to affordable credit lines from traditional banks. Or, in other situations, their credit cards are maxed out.

However, there are specific circumstances where a financial emergency cannot be met with a credit card, and cash advances aren’t an option. If you do have access to traditional credit as a payday loan borrower, you can utilize it in a few specific ways to help make your payday loan manageable.

The easiest way to do this is to place a weekly expense, such as gasoline or groceries, on your credit card so that the cash you save can be applied to your payday loan. It’s also a good idea to look into a balance transfer.

Essentially, you’ll use the time that your payday loan gives you to apply for and obtain another credit card, then move the balance on your existing credit card to that one. These moves often allow you to pay no interest for a short time after the transfer, thereby lowering your minimum monthly payment.

Conclusion

When utilizing payday loans, it’s important to understand that they’re designed to extend a financial issue, not remove it. By taking decisive action right away at the beginning of your loan period, you’ll place yourself in the best possible chance to avoid lingering debt from this type of product.